MINES minister Christopher Yaluma has warned that Konkola Copper Mines will lose its operating license if it fails to honour its obligations of paying the over US$200 million debt to contractors and suppliers.
The visibly annoyed Yaluma who returned to Chingola on Tuesday was shocked that no contractor had been paid by midday despite assurances from KCM management last week that it would begin to pay them as agreed.
After protests by hundreds of miners and withdrawal of labour by major contractors and suppliers, KCM succumbed to pressure last week and announced that it would start settling its huge debt on Tuesday.
Yaluma travelled to Chingola last Thursday following the protests and vowed that he would not leave the town until KCM pays suppliers and contractors that were owed millions of dollars.
And hundreds of miners working for contractors and suppliers have not been paid their salaries for over four months because the mining giant has not been paying their companies that are contracted to work at Nchanga and Konkola Business Units in Chingola and Chililabombwe respectively.
Yaluma and labour minister Joyce Nonde Simukoko, Chingola Mayor Titus Tembo and other senior government officials held a protracted closed door meeting with KCM management led by chief executive officer Steven Din.
Yaluma announced later that KCM would begin to pay contractors and suppliers, with the first payment to be made on Tuesday, December 27.
But Yaluma who returned to Chingola on Tuesday afternoon was shocked to learn that no supplier or contractor had been paid.
This was after one of the contractors, Blackwell Siwale, disclosed during a meeting that none of them had been paid.
“This is disappointing and I will not allow KCM to behave like this. I want to warn management that it will face serious consequences if it fails to pay suppliers and contractors,” Yaluma said during a meeting with contractors and suppliers.
“Management last week pledged to pay the US$200 million dollars debt in full by today.”
He said it was wrong for the mining giant to think of issuing partial payments when contractors had been waiting for their money for months and they had salaries to pay the workers in their respective companies.�
He said he was back in Chingola as promised on Friday last week to ensure that all contractors and suppliers were paid by Tuesday.�
“If KCM does not serve the interests of the nation, it will lose its operating licence,” warned Yaluma.
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Yaluma Warns KCM Over Failure To Pay $200m Debt
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